By Mike Wackett (The Loadstar)– Less than a week after Taiwanese container line Yang Ming reported its initial web revenue in 10 quarters, media today reported that the provider gets on the brink of getting ultra-large container vessels (ULCVs).

The unofficial records comply with market rumours recently that Hyundai Merchant Marine (HMM) will sign up with the rankings of CMA CGM as well as MSC by getting 14 22,000 teu vessels.

HMM has actually given that refuted the records as well as Yang Ming has yet to react, however with Asian backyards hopeless for brand-new company, providers might be lured by hefty discount rates.

It is extremely not likely that HMM would certainly remain in the going to purchase brand-new ULCVs, considered that it is just a port charterer on 2M’s Asia-Europe profession, where 18,000 teu-plus ships are the brand-new regular.

And Yang Ming, regardless of its parlous economic health and wellness, its companions in THE Alliance appear unsure by ULCVs.

Indeed, Hapag-Lloyd acquired its 6 18,000 teu course as well as 10 15,000 teu course ULCVs from its requisition of UASC as well as has given that claimed that it has “no plans” to purchase any type of brand-new vessels.

Jeremy Nixon, the president of the soon-to-be-merged Japanese container providers K Line, MOL as well as NYK, is likewise not a follower of the leviathans. At the TPM Asia meeting in October, he claimed: “I am not convinced by the big ships. I don’t believe that is the way forward.”

While CMA CGM, MSC, Maersk, Cosco, OOCL as well as, more recently, Evergreen are plainly persuaded of the economic situation of range benefit of ULCVs, expert Drewry today recommended that the total advantages might be restricted.

Last year, Drewry embarked on a simulation research study on the functional as well as economic effect on stakeholders in the supply chain, consisting of incurable drivers as well as ports, as ship dimensions raised over 18,000 teu.

It claimed: “The study found that scale economies from megaships only work for the total supply chain if terminals can increase productivity in line with increases in vessel size.”

Its evaluation discovered that the overall system price financial savings in between an 8,000 teu as well as a 16,000 teu vessel “peak at only 5% of total network costs and economies of scale diminish as vessel sizes rise beyond 18,000 teu”.

Nevertheless, Drewry’s version did back up the linings’ method that the providers can accomplish academic price financial savings of over 20% in between running an 8,000 teu vessel as well as an 18,000 teu ULCV.

However, that profit rises just partially when dimensions increase to the 22,000 teu mega-ships currently released by OOCL.

“Companies with the most logical reasons to order ULCVs probably won’t, whereas companies that already have plenty are the most interested in adding to their fleets. The supposed prestige of being the biggest carrier appears to be outweighing economic sense at the moment,” Drewry claimed.

The Loadstar is quick coming to be understood at the highest degree of logistics as well as supply chain administration as one of the very best resources of significant evaluation as well as discourse.

Check them out at TheLoadstar.co.uk, or discover them on Facebook as well as Twitter